Founders run the company, not investors: Flipkart CEO

Founders run the company, not investors: Flipkart CEO

Flipkart, the poster boy of Indian e-commerce, hit a new high by raising $1 billion (about Rs 6,000 crore) in the latest funding round, led by existing investors Tiger Global Management and Naspers.

The company's co-founder and CEO Sachin Bansal talks to Business Standard about the promoters’ shareholding in Flipkart, the sudden decision to raise funds and the now-on now-off plans for an Initial Public Offer.

Edited excerpts:

A few months ago, you had said there were no plans to raise funds. How did that decision change?

I was very serious when I said we were not looking to raise funds.

We did not have any need for raising funds and we were not looking at it either.

It just so happened that this opportunity came our way and we evaluated the merits and demerits of doing it.

After the evaluation, we thought it would be rather wise to go ahead and raise the funds.

Founders run the company, not investors: Flipkart CEO

With your war chest much stronger now, could we hear something on the acquisition front soon?

We are pretty broadminded about acquisitions and strategic investments.

We are looking at all areas such as payments, logistics, technology, cataloging and packaging.

I can't say more about it right now.

In your personal capacity, are you and Binny looking at making any angel investments into start-ups that Flipkart could benefit from?

I have invested in a start-up, but the motive behind such angel investments is not to derive strategic benefits.

Such an investment is more focused on helping another entrepreneur and investing in the development of the ecosystem.

I recently invested in a news-related application, which has nothing to do with Flipkart. So if we need to invest in something that would benefit Flipkart, we will do it through the company and not personally.

Disclaimer: Rediff.com also has an e-commerce business which competes in some areas with Flipkart.